Skip to main content

tv   Closing Bell  CNBC  March 22, 2013 3:00pm-4:00pm EDT

3:00 pm
pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review. has an equally thrilling, lesser-known counterpart. conquer them with the exhilarating is 250. get great values on your favorite lexus models during the command performance sales event. this is the pursuit of perfection. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪
3:01 pm
well, you can really sink your teeth into today's thing that makes you go -- >> mmm. >> apparently they call it a baco. it's a taco shell made of bacon. let's bring in our resident bacon expert, jane wells, who discovered this glorious mo monstrosi monstrosity. >> how many have you had today? >> this is my second, actually. this is the remains of the first one. my sodium levels off the charts. it is called the baco, because it rhymes with taco, brian. >> but bacon. >> are the west michigan white caps called the baco. think of it as a blt without the bread.
3:02 pm
eat, it's good. >> that's good. it's hard to eat, though, because it's kind of floppy. that's the only thing i would say to the downside. it's kind of hard to eat. you get mayo on the side too. you could put mayo on it. >> oh, man, that is good. >> i'm going ton vacation in about 30 seconds and this is a great way to start it. >> you have sour cream all over your lip. >> oh, hello! >> enjoy your vacation, brian! >> "closing bell" is next. bon appetit, our colleagues over there. >> hi, everybody. welcome to the "closing bell." final stretch for friday. tgif. i'm maria bartiromo at the new york stock exchange. another rally. looks like this market finishes up. a down week, but a positive note this friday. >> on today's program, a magic number for the dow, in order to finish the week higher, we need
3:03 pm
to be up 92 points today, at 14,514.11. now, we could do that. >> yeah, we could. we were up 98 points at the high of the day. we could do that. we'll see if that happens. then in a few minutes, one of the smartest minds on the stock market, brian wean with tell us why profit margins could dent this market. >> one of the real great guys. later, did the financial crisis give light to the walking dead? don't take my word for it. this is what the show's creator, robert kickermrkman and he is g to be around. believe me, the crew is very excited about this. >> that's one of your favorite shows, right? >> oh, yeah. you too, right? >> absolutely. you can't say this is a walking dead stock market. the dow jones industrial, i've
3:04 pm
got 80 points, about one-half of one percent. the nasdaq composite, also higher. shies of the highs of the afternoon, but up and the s&p 500 up there as well. >> frankly, i'm a "true blood" guy. but the major averages need to hit these levels, i think we've written them down. if not, listen carefully. for the down, it's 14,514.11 and we have to be up 92 points to hit that number. for the nasdaq, it's 3249.07. we have to be up 26 points to hit that number. and the s&p needs to be at 1560.70, we need to be up 14 points for that number. >> and let's see if we can do it. in today's "closing bell" exchange, we have michael, lee munson from portfolio asset management, and our own rick
3:05 pm
santelli. good to see everybody. peter, what do you see in this final hour here in terms of flow? how do you think this market goes? >> for the close, i'm still seeing it for sale, but i don't think that's going to mean anything as we move forward. i'm still trying to wrap my arms around the wheat grass sandwich i had to lunch as opposed to that last segment. >> the bacon taco. >> no, i think that it's very possible. i don't think there's that much, really, it won't take that much for the market to close higher. we'll wait and see. i haven't seen anything that tells me that it's going to. >> michael guy ed, we discussed that you had went back to bonds. >> friday, there was enough deterioration to push our stocks back to bonds. it's not the walking dead stock market, it's the honey badger stock market. the stock market don't give a
3:06 pm
you know what about cyprus. now, the bond market clearly is still concerned here. and i think there is a fear trade that's happening. you still have a lot of things that don't look right internally. you still have small caps which are weak. and emerging markets can't get aed by. that's probably the next pitch. but until we get some kind of real persistent outperformance. >> you remain defensive? >> you say emerge marketing can't get a bid? >> they can't outperform the s&p. you've seen clear strength in the qe countries of japan and the u.s. everything else has been outperforming. >> lee munson, what do you make of what went on with fedex and the transports this week? for a long time, we kept seeing the transports and the industrials side by side rallying. they've broken down. do you worry about that? >> i don't, because you have to remember, maria, since the beginning of the year, the transports have been up about, you know, 4% or 5% against the s&p. they're just coming down a little bit. i think it's a little profit taking. i'm not concerning that investors should be worried that
3:07 pm
the transports are going to be negative this week. it doesn't mean you go back to dow theory and it's the end of the rally. so i would ignore that for this week, at least. >> rick santelli -- who said that, peter? >> me, i agree totally about the transports. i think this is just a blip in the -- in our year move. >> you're hanging in there -- >> absolutely. >> with more all-time highs down the road? >> yes. >> rick santelli, they are going late into the nights with the negotiations in nick seeya. how much will the markets respond one way or the other as to wether or not they get a bailout or not in cyprus. how important is that story to us right now? >> i think if cyprus doesn't get resolved, i think that becomes a bigger negative story. i don't think it's catastrophic, but i do think you'll continue to see, for example, the distance between our tens and booms. i think you'll see some of those continue to widen as the safe harbor in europe gets to be a deeper pocket. if it gets resolved, i think
3:08 pm
some of those spreads reverse a bit. but many on this trading floor think that the damage is already done. the idea that they would take people's money that was an insured deposit scenario has done damage that's hard to remove. so i think that it continues to be somewhat of a deal, no matter how it turns out. but i think having said all of that, looking at the stocks at these levels, what really hits me is, if you look at the last two months, basically, treasury tenures have been at a closing yield range of 185 to 285. 20 basis points. and at 191, we're in the lower third of that range. so even the stock market, for example, is getting trumped a bit. its strength is usually higher yields. the anxiety in europe is real and it's a question of how much more real it gets regarding the outcome for cyprus. >> michael, you like bonds. how much lower could those yields go? >> i wouldn't be surprised to see us break the 189 level.
3:09 pm
there's a real complacency and conviction. but you have to be cautious of a universal belief. it's not where the payout is highest. the payout is actually quite high now. i'm betting that cyprus ends up being a much bigger problem, not because cyprus is a big part of the euro zone, but because it sets a precedent for other countries. >> are you expecting money to come out of bonds and go find a home in stocks? everyone's trying to figure out this great rotation that isn't. you think it is at some point? >> i think it's a longer term theme, but this discussion about rising yields i think has to be tempered a bit. every day that goes by, the holders of capital are getting bolder. that means from an asset allocation perspective, there isn't going to be a lot of sticky money still in bonds. at the margin, you'll see it, but i think it's a little bit overhyped relative to demographics. >> meanwhile, lee munson, even with all this nervousness, your message to bears is, is that all you've got? >> i mean, is that all you have? we went last week to a neutral
3:10 pm
allocation. if people had a 60/40 mix, we went to that mix. one thing i'm really looking forward to in these next few weeks, if we do get some freakout on cyprus, i can't wait to trade my treasuries in for some equity in the next few weeks to get overweight in the stock market. any type of correction we may get this year,time going to go from a neutral weighting to overweighting, trade those treasuries. and that's what people should do this weekend, bill. they should look at their portfolios and say, am i in my classic allocation? if you are, you don't have to worry about if there's going to be a correction or if there won't be. why hassle? it's friday. whew do you want to try to time the market right now? >> michael will be happy to buy those treasuries from you when you're ready to sell. >> i can't wait to give them to him. >> peter, what about earnings? are you worried about earnings coming out in the next two or three weeks. >> you would think so, maria. you would think that that's sort of an indicator for the next
3:11 pm
quarter, but i'm still relatively positive on earnings. i don't think we're going to have a gang buster quarter. and i thought last quarter, we sort of did. because i think everything was so tempered down, i think we'll probably have something very, very in line for what everybody's expecting. i don't think there's going to be any major surprises in either direction. but, you know, that being said, that still means people are making money. these companies are still earning money. they may not be growing at 13% annual, but they still are growing, they still are putting away cash. to me, that's still a positive sign long-term in the market. >> so the fedexes and the oracles are special situations in your view? they disappointmented big-time this week. >> they disappointed, but i think the expectation was a little bit too hard for them. anytime you look at oracle, oracle always seems to disappoint me. every quarter, you know, you would think this is one of the greatest companies in this country, and every time they turn around, they're doing something else and it's kind of like you scratch your head. fedex, the other side, you saw that in transports, that is a disappointment and i'm a little
3:12 pm
surprised by that. but i think that's a short-term thing. i don't think that's a long-term thing at all. >> in terms of longer term, do you think this economy improves second half or do you think it slows down? >> i think, as a matter of fact, we're probably in the second quarter. you'll start seeing slow growth. but i think as this summer winds, you know, goes through, we'll start seeing some growth again. i do think that by the end of the year, we're going to be not a lot higher, but i think we'll be at all-time highs as the year goes on. probably the the end of the summer, the third quarter going into the fourth quarter. i'm positive. >> so bill, because the s&p capital iq estimates call for 0.6% growth the first quarter and then it goes up to 7%. so they're expecting profits to actually reaccelerate second half. >> lee munson, you're the only outside guest buying stocks here. what are you buying here? >> you know, i'm just focusing where i need to get some more exposure. i'm focusing first on emerging markets. they've lagged year-to-date. i think they can outperform by december 31st. i like the emerging markets to add more money today. i would also say, add more money
3:13 pm
to the s&p 500 today. the only place i wouldn't add more money is the efa or europe in japan. there's places you could put your money. and if you want to buy some treasuries, go ahead and buy them. it's part of a diversified portfolio. don't feel bad if you're a bull and need some treasuries. >> before we go, you've got the six box sitting there. how's your bracket doing. anybody pick harvard last night? >> that was the only winner i had. >> all my other picks lost. yeah. >> i'm wearing my tie. >> ole miss making it over. thank you all. have a good weekend. >> owl bouncing back. the dow jones industrial is on the move today. where will that leave the week in terms of stocks? let's get to josh lipton. he'sali tallying it all up. >> after three weeks of gains for the three major indices,
3:14 pm
four for the dow, let's review where the major indices need to finish to break even. for the dow, 14,514. the biggest gainer by the week in the dow was coke, the laggard was cisco. as for the s&p 500, breaking even is 1,560. your leader this week, nike. the worst performer, oracle. on the nasdaq, they'll have to it 3249 to break even. and we'll end on one notable mover to mention. that's plaque bblackberry, it's0 phone going on sale. that stock down some 7% right now. >> thank you so much, josh. we've got 45 minutes left in trading for the day and for the week and a market that's up in the double digits, up 75 points on the dow jones industrial average. up next, it's the f-word that some say could ignite job growth on the economy. >> frac. >> oh, frac me.
3:15 pm
>> he is fracking lying. >> i don't give a frac. >> it's to shoot him out of the fracking sky. >> no fracking way, lee. >> a new set of standards in environmentalists seem to be on board with could open the door for many new shale projects. and former nfl quarterback drew bledsoe is a big investor in a company that is involved in fracking. he huddles it up with us exclusively to talk about his game plan. >> people are talking about that as a game changer for this economy, in terms of job creation. and after the bell, what if we told you the fall of lehman brothers could have been led to the walking dead becoming a smash hit? sounds far fetched? that's what the show's creator, robert kirkland says. he's here with us later on in the program. stay tuned for a special, exclusive interview. (announcer) scottrade knows our clients trade
3:16 pm
and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company." ...amelia... neil and buzz: for teaching us that you can't create the future...
3:17 pm
by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it.
3:18 pm
welcome back. we have breaking news right now on jpmorgan. let's get to kayla tausche. she's got the story. >> maria, jpmorgan's proxy filing for last year just hitting the wires. and in it, the board strongly endorses the continued role of
3:19 pm
ceo jamie dimon as chairman, as well as supporting that dual role for two reasons. the board cites the strong performance of jpmorgan during a time when the rest of the financial institutions experienced great difficulty. the second, interestingly, is the cited independence and strength of the board during the difficulty experienced by the chief investment office or the london whale trades last year. this is coming out in the proxy, maria, as a faction representing about 1% of jpmorgan shareholders are also attempting to split that role of chairman and ceo. we'll find out what actually happens there at the shareholder meeting later this year, but the board is backing him for both of those roles. maria? >> kayla, thanks very much. bill, i don't know how you feel about this. as a general matter, i think it probably is the better idea to have separate roles. having said that, very hard to argue with a company that's been doing so well, like a disney. same thing. >> exactly. i think it's a case-by-case situation. you know, if the company is doing fine, there's no governance issues, you don't have a problem. if you've got a problem, it's
3:20 pm
time to separate the two. >> exactly. >> by the way, i forgot to wish you happy world water day. >> oh, thank you so much. and to you as well. >> thank you so much. no one has the day off, there are no hallmark cards for this day, but this is an opportunity to look at companies that are looking to conserve water and make money doing it at the same time. >> yes, it is. and bertha coombs has the story of an oil man using water no one can ever use again for fracking. bertha? >> that's right, maria. the drought in texas is now entering its third year and it's grown more severe as the water-intensive fracking boom has exploded in the lone star state. you can see the orange and the red, that's extreme drought in 90% of the state. now, a couple of oil and gas veterans think they've found a win-win solution. tiny alpha solutions is tapping into the one source of water that is growing in texas, municipal waste water. they've contracted to buy the effluent that's normally disarranged into waterways and they're treating it and
3:21 pm
transporting it out to fracking operations. they've lined out more than a hundred cities and towns, like carnes city, where they have their first operation, and they are starting to get busy from fracking companies, because the costs are less than treating brackish saltwater. >> i hope that we serve as a model, really, for texas and the rest of the nation, that private companies and public entities can come together. they can create something that the market will help to achieve certain public goals. >> of course, the question is, how quickly can they scale up operations? fracking takes 2 to 4 million gallons per well. that's about a 2 to 1 ratio of the oil that's produced in terms of the water that they need. and a university of texas study had found that frac water use doubled just in the three years ahead of the drought and continues to grow. eog, the leading eagleford producer, has committed to cutting its fresh water use and using alternatives. .
3:22 pm
so they are looking for technologies like this. you can read more about this and all of the technologies facing texas right now with the drought on pl maria? >> many allowing for more shale gas exploration and fracking are very critical to the economy growing in this country. two huge energy ceos told me as much as this just a month ago on the "closing bell". >> well, it's tremendous. it's a renaissance for our country, certainly for our industry, and for our company as well at conocophillips. >> there's an opportunity to generate a couple of trillion of dollars in tax revenue over the next 20 years. there's opportunity to generate millions of additional jobs. >> well, believe it or not, joining us right now is former nfl quarterback drew bledsoe. he's an investor in a company called ecosphere, which is making a big bet on fracking, and more specifically, drew, it's about the cleaning of the water that's used in the fracking process. it's an environmentally clean process, which has a lot of people worried about the impact
3:23 pm
fracking has on the environment. this is a possible solution, i guess, yes? >> it is, exactly. i help lead an investment group and funded some brilliant scientists down in florida actually a few years ago. our technology uses no chemicals. we actually in the past since 2008, we've cleaned over 2.8 billion gallons of water, which has eliminated 1.3 million gallons of chemicals. we allow these companies to, first of all, clean the water before they use it the first time, and then also recycle it and reuse it in their process. so we're closing the loop for these responsible companies. >> what about, drew, the government standards? i mean, hasn't this been one of the big detriments for moving forward? how have the standards changed? >> you know, it has been. and they're pushing for more transparency, regarding what chemicals are used, but where we come in, we eliminate those chemicals almost entirely. we allow these companies, we have technology that allows
3:24 pm
these technologies in realtime to clean their water, recycle it, and reuse the water. so we're eliminating chemicals and we're also reducing dramaly the trucking that's involved with fracking, because they can reuse the water right on site. so it's been really effective for us. our company is growing very quickly and we're excited about the future. obviously, natural gas is so important to our energy independence, and if we can help solve one problem for the industry, we feel like we can be an important piece of that puzzle. >> you're growing, but you've admitted that there are obstacles to that growth. and one of them is convincing the big energy companies to adopt something new like this. does that mean it's maybe not as cost effective for them as other technologies, the ones that use the chemicals, for example? >> no, we actually, in many cases can be very, very competitive and in some cases, actually, even be more cost effective than chemicals. but then when you look at, you know, when you combine that with the cost of trucking water in and out, and you combine that with the chemical costs and all of those things, we feel like
3:25 pm
we're providing a very, very good solution. but it is tough to convince some of these large companies to change and move our direction. that's their prerogative. but weapon continue to get out there in the market and try to do everything we can to solve this important problem. >> how did you get involved in this, drew? why has this become so important to you? >> you know, it's a long story, but as i transitioned out of the nfl, it's really important to me, you know, i wanted to move into the business world, but i also wanted to do things that are positive for the world. so water is only going to continue to be a bigger and bigger issue as we move forward and the population grows in the world, and we really feel like this technology, not only in the natural gas fracking world, but in the world in general can have a huge impact as we mover forward in our population growth. >> you know, i know you're environmentally concerned, but there are still skeptics out there, that you can find any clean technology when it comes to fracking. i had a tweeter, a viewer tweet me. he said, before fracking gets
3:26 pm
clean, hell will freeze over. what do you say to the skeptics who still can't believe that a process like fracking that's so controversial can be made clean technology? >> well, we're doing it. we've cleaned 2.8 billion gallons of water with almost no chemicals. and because of that, we've eliminated the use of, you know, like over 1.3 million gallons of chemicals. so, you know, that's all i can say is, we're doing it. >> proof is in the pudding. drew, good to have you on the program. thank you. >> thanks, drew. >> thanks for giving us the time. >> we'll see you soon. let's get to some breaking news on the faa. we go live to hampton pearson with that. >> reporter: bill, the faa is out with its list of towers around the country to be closed, 149, including the one behind me here at the frederick, maryland, airport, scheduled to be closed starting on the 27th. another 24, if you will, i want to double check here, another 24
3:27 pm
towers will remain open under that program. all part of the faa and d.o.t. meeting, a $630 million sequestration target that had to be met. in essence, the transportation secretary, ray lahood said, we listened to communities around the country make the case for why facilities should be open and how important it was, but in the end it came down to a matter of making these sequestration targets, as well as how important these particular facilities were to the homeland defense. so the faa out with its list, 149 contract towers around the country to be closed starting on april 7th. >> what does that mean for travelers? >> are we still talking delays? >> reporter: well, number one, bill and maria, it affects the general aviation community, small planes. for example, this airport will stay open, but it will be up to the pilots to basically handle the sequencing of takeoffs and landings. so it's primarily the general aviation community gets
3:28 pm
particularly hard hit by this round of sequestration-related closings. >> all right. we'll leave it there. thanks, hampton. >> thanks, hampton. heading towards the close. markets slowly drifting south. we needed to be up 92 on the dow to finish positive for the week, but it's up 66 points off the highs for the session. >> the new blackberry on sale. the company looking to squeeze some new juice out of its new z-10 device on sale today. but now apple may be stealing some of the thunder. we will explain. take a look at the phone wars and take a look at both stocks to see which might be a better buy right now. and later, forget tax and spending, washington is voting today to make sure when you spend online, you get taxed. a national internet sales tax isn't just talk anymore. we'll have a live report. only hertz gives you a carfirmation. hey, this is challenger. i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz.
3:29 pm
it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. we're going to wake the world up. and watch, with eyes wide, as it gets to work. cisco. tomorrow starts here.
3:30 pm
from the united states postal service a small jam maker can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪
3:31 pm
welcome back. the nuh-ew touch screen plaqubl is in stores today. >> now there is a report that apple could be stealing everyone's thunder with an event three months down the road. jackie deangelis has details on that. jackie? >> reporter: bill, maria, good afternoon to you. well, it's a little bit too early to say whether or not blackberry has a win on its hands with the z-10 here today. we saw the launch of this at&t store in midtown. foot traffic was a little bit tepid, but that's not to say there weren't a flurry of
3:32 pm
pre-orders online. it's meant to be out there competing with samsung devices and also apple products. wile we've son-in-lonly about t sold here at this story, there are still a lot of blackberry fans out there that are praising this device. >> blackberries have always had the best keyboards, but the way they implemented this with swooip with auto complete is pretty cool. the way to peek at your key hub, and the integration with facebook and twitter. so you can have a hub of all your interactions is, i think, a neat feature. >> now, as that gentleman said, obviously, there are a lot of users out there that are noticing these differences and it's blackberry who are hoping they'll like it and embrace the phone and hopefully pick up a little bit of market share. but just as the z-10 is making its debut, there are also reports out that apple is going to be coming out with the iphone 5s and the ipad 5. that would be on june 29th,
3:33 pm
according to those reports. so the smartphone wars are really far from over. and i want to mention that blackberry shares are down significantly this afternoon, more than 8%. bill and maria? >> yeah, wouldn't you know on the day they introduce, sell on the news, i guess. thank you, jackie, very much. so blackberry is all in on this new device, and if the reports on apple are accurate, june will be a huge month for the company and the stock. which should you bet on right now? it's blackberry versus apple. we start talking numbers on that on the technical side with jeffrey and jeff killbert, founder of kkm financial and a cnbc contributor. jonathan, walk us through the chart. you like apple versus blackberry, based on the charts. why? >> we do like apple. so if we look back to january 2012, when apple first broke above that level, it went parabollic, but since the september peak, it's a 40% correction. that's where buyers expect to
3:34 pm
present themselves and they have. if we look at the weekly chart, 420 also represents the 150-week moving average. that's a moving average that's still rising and that's another supportive factor for the stock. and finally, if we look a little bit closer on the daily chart, we can see that apple has broken above a very defined six-month down trend. in addition, today, it's finally broken above its 50-day moving average for the first time since last october, so all that says to us it's moving higher, likely to the 500 area, potentially up to 550. >> jeff, what about the fundamentals. who do you like better? >> bill, john laid out some great charts there, but ask any pirate. there's a lot of great charts sitting on the bottom of the ocean. and it really feels, bill, it's really not put in a bottom. even after this recent buoy, we're flat on the month. there's no momentum in this stock and it hasn't found a bottom. we're really looking for it to go down, because at the end of the day, bill, this whole broader index, all-time highs in about every index, we are seeing apple struggling for its life.
3:35 pm
therefore, when we do see a market correction, apple will go back down to 400. >> but do you like blackberry? >> i do like blackberry. i like the trade momentum here. we're seeing this big move, about 30% even with the way blackberry sold off, due to the fact they don't have the pizazz you would see out of google, but i like the momentum for blackberry. >> jeff, if i could jump in here, the seasonalities the for apple are very strong right now. if you look over the last seven years, apple has been positive in april six out of those last seven years with an average gain of about 10%n'tn on the month. >> but they're talking about in three months they're going to come out with the iphone 5s or a new ipad. that's nothing new. we need something big. i'm a big believer in apple, but not until we find a bottom, due to the fact there's been no catalyst to turn this stock around. >> but it's down 40% from the highs. meanwhile, blackberry has rallied up over 200% from its september lows.
3:36 pm
>> well, blackberry's left for dead and i think they're going to surprise people. you could see the stock come back. all they need is 5 million of these sales. i think blackberry really has a chance here and we want to find our risk and buy some upside calls here. that's what we're suggesting. >> thank you, guys, good discussion. and maria, as you know, i'm waiting for the q-10, the one with the keyboard, so i can send this off to the smithsonian, where it belongs. >> i'd say. that is an old version. >> i've grown attached to it. >> i just got the iphone 5. >> what do you think? >> i like it so far. >> you've been struggling with a lot of those. we'll see if you can stay with that one. >> mobile device problems. 25 minutes left, the dow is up 71 points. looks like we may finish negative for the week. >> just ahead, we check with influential wall streeter, byron wien. he worries we could see a weak season and that could undermine the s&p 500 this year. he's here next with that.
3:37 pm
and later, the walking dead, aloof and well. one of the biggest tv hits of all-time, and the creator says the financial crisis helped pave the way. he's here exclusively coming up after the bell. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 gives me tools that help me find opportunities more easily. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 and with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime. tdd#: 1-800-345-2550 until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. tdd#: 1-800-345-2550 and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, tdd#: 1-800-345-2550 and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-866-294-5412.
3:38 pm
3:39 pm
3:40 pm
well, the dow looks like it's going to finish the week strong here. >> but will it be enough to be positive for the whole week? bob pisani with the latest market averaction. >> widespread belief things are going to be fine in cyprus. a year ago, they would have panicked. but that's not the case. very different attitude now than a year ago. take a look at a few groups that are moving. steel stocks, weak. what a mess. ak steel, that's probably a ten-year low, $3. they gave a warning on their guidance, on epps. steel stocks doing nothing. very interesting journal story about how hmos have been warning some suppliers and customers that they may have to double their fees for next year, because of the higher costs associated with obama care. you see some declines there as well. for the week, the major indices, believe it or not, this would be the worst week of the year. and essentially, all the major
3:41 pm
indices are down fractionally. and i say for the s&p 500, down 0.4%, an indication of how strong we've been all throughout the year. i'll have the final numbers in just half an hour. guys, back to you. >> thank you so much, bob. nearly a month ago, byron wien told us that the market was getting ahead of itself and profit margins could take it back. >> that was back on the 27th. since then, the markets have continued to climbing. joining us, byron wien, happy friday, byron. >> yeah, i'm still there. >> so you're still cautious? the market has continued higher. >> well, yeah, you know, as long as the fed is pumping $85 billion a month into the market, a lot of that is designed to go into the real economy. but it ends up going into financial assets. so it's been pushing stocks higher. but, you know, the earnings season is starting to -- is upon us. and we've already had
3:42 pm
indications from federal express and oracle that it's a tough environment out there. >> well, let me ask you about the environment, broadly speaking, in terms of the corporate side of the story, byron. because, of course, we know this week, we saw deterioration in the transports. we saw fedex reporting disappointment. oracle reported disappointment. cart pillar come under some pressure. is this indicative of a tough earnings period in the first quarter? >> that's what i think, maria. but the market doesn't seem to care. the market doesn't care about anything. it doesn't care about cyprus. doesn't care about disappointing earnings. as long as this money is flowing into the -- you know, out of the fed, stocks keep going higher. >> but in the meantime, we've had some -- many analysts, actually, market strategists, come out in the last week, week and a half, raising their estimates for where the s&p will close for this year, because they see the impact that fed policy has had on this market.
3:43 pm
so, why not just ride the market higher here, byron, and wait for the fed to change its mind? >> well, i don't -- you know, phil, i'm worried that some of the strategists that are changing to a bullish stance from a bearish stance are letting the market tell them what to do. and their job is to try to determine what the reality is. on their side, however, there is the point that housing is improving, house prices are up, the stock market is up, consumer net worth is increasing, consumers are still spending. so maybe the economy will be strong enough to support the market at the current level or higher level. but i really think it's liquidity that's driving the market. >> well, liquidity, for sure, thanks to the fed. but let me ask you, byron. if you think this buy on the dip mentality is going to continue until the fed gets out of the way, and the market's going to ignore all these negative signs, like the earnings story, like
3:44 pm
sequestration, blah blah blah, do you think at some point we're going to have an opportunity to get into this market at lower levels? in other words, are you expecting a near-term correction? >> i am. i still am. and one of the reasons could be that if, in fact, the economy is growing somewhat stronger than people project at the beginning of the year, if it's growing at 3% rather than 2, i think there's a good chance the fed will stop or at least pull back or soften the amount of easing they're doing, and that could cause a change in course for the market. >> how big? how big of a correction? 5%, 10%? >> it could be 10%, at least. >> 10, 15? >> it could be more than 10. because it depends on where the market is when this all starts. >> all right. we will leave it there. byron, good to have you on the program. >> okay, thank you. >> he's so smart. thanks, byron. all right, let's move towards the close here. what do we have? we have 18 minutes left on the
3:45 pm
trading day and starting to move a little higher here. up 78 points. dow needs to be up 92 to finish positive for the week. >> we haven't talked a lot about cyprus today, bill. the situation is coming to a crucial deadline, which will decide the financial fate of the country, quite possibly, the global markets. michelle caruso-cabrera is on the ground live from cyprus with the latest. and after the bell, the zombie business has been good business. just ask companies like amc networks and netflix. up ahead, how your portfolio can come alive with "the walking dead." plus, the show's creator will be with us. and wait until you hear why he says the financial crisis helped his show become the megait that it is. stay tuned. ♪
3:46 pm
[ construction sounds ] ♪
3:47 pm
[ watch ticking ] [ engine revs ] come in. ♪ got the coffee. that was fast. we're outta here. ♪ [ engine revs ] ♪ otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ only hertz gives you a carfirmation. hey, this is challenger.
3:48 pm
i'll be waiting for you in stall 5. it confirms your reservation and the location your car is in, the moment you land. it's just another way you'll be traveling at the speed of hertz. welcome back. huge clouds of uncertainty hanging over cyprus today as we head into the weekend. the market betting it will all work out. is it right? let's go live to cyprus where michelle caruso-cabrera is standing by on the ground live right now. over to you, michelle. >> reporter: protesters have been out here for two days in front of the parliament, and those protests are likely to get bigger and more intense. in fact, already tonight, we have seen them burning the european flag with great cheers from the crowds. there have been developments today that are likely to anger
3:49 pm
the people of cyprus. in fact, developments in just the last hour. last we left you, the european union was demanding that cyprus wind down one of the two big sick banks here. now they are demanding that both big sick banks get wind down. they're insisting that cyprus' banking system get much smaller. that's likely going to be very unpleasant to the people here, because so many jobs are dependent on it. the deadline is monday, coming from the european central bank, and if they don't do it, this country faces potential financial collapse, even, perhaps, having to abandon the euro. bill, maria, back to you. >> all right, michelle, thanks very much. >> it's very interesting that you have this deadline, we're going into what could be a critical weekend on a story the markets have watched very closely this week and we're
3:50 pm
higher. >> you don't usually see that. >> no, you don't. >> people do not want to hold stocks over a weekend when we have this kind of uncertainty. it goes to underline the idea that the markets do not care about cyprus. >> yes. they don't care until they do care, if something happens on monday. >> we're in the final stretch. >> so good day for stocks, but the dow transports were up and down this week. just ahead, why some think the much-anticipated pullback may be near after this. governor of getting it done. you know how to dance... with a deadline. and from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. yes, it is. all stations come over to mithis is for real this time. step seven point two one two.
3:51 pm
verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers. (announcer) scottrade knows our and invest their own way. with scottrade's smart text, i can quickly understand my charts, and spend more time trading. their quick trade bar lets my account follow me online so i can react in real-time. plus, my local scottrade office is there to help. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade. voted "best investment services company."
3:52 pm
3:53 pm
welcome back. the major averages holding on to strong gains as we approach a close. is it enough to finish in positive territory for the week? >> that's the question right now, maria. >> doesn't look like it. >> let's look at the market action. with us, amy wu and david dorst. welcome to both of you. still going up here, david. in fact, your guy, adam parker raised his s&p target. >> he's looking for 1600, year-end. that's 3.5% from here. basic change has been in a p.e. multiple, not so much in the earnings. we say buy mexico. we say buy japan, hedged equity.
3:54 pm
we say buy health care. we say buy the housing stocks. look at this chart here. >> you have a new report out. >> now, the housing stocks have come up. these are the stocks, maria, that have come up 150%, but they're still 50% below their old peak. so we think the low-hanging fruit's been picked, but go and pick some mid-hanging fruit now. >> what about earnings? are we going to see disappointments like we saw this week? oracle, fedex, and does that impact the broader market? >> it's very interesting you say that, because the options market would say probably yes. fedex is a pretty big surprise, right? and ahead of that, we saw a lot of people positioning with put spreads, positioning with hedges, and now people are asking about the overall industrial sector? is that something scary? we're seeing people hedge on that and on energy, too. >> fedex really surprised a lot of people. >> and the transports had probably their worst week of this year, so far. and that's a critical part of this market, isn't it? >> and it's interesting, because from an options perspective, a lot of people have forgotten
3:55 pm
about cyprus, right? they've forgotten about europe. but the options market has sort of remembered, because we've seen sku levels and trash being purchased for a while now, and that's still happening and you're still seeing a lot of fear being built into this market. whether or not we're going to open up on monday, i think a lot of it depends what happens this weekend. >> david, what about you on earnings? >> the first three innings, maria, has been housing, okay, housing's doing better. you've got the energy renaissance in the united states. and the reshoring. h.e.r. that's basically been driving the market, plus the absence of bad things and monetary stimulus. prospects are going to call the tune, maria. and if you have difficulty in the profits, the markets are going to sell off, so profits, wages, structural reform. those are the things you need to see to get us to the promised land of much higher numbers ton s&p. >> are you surprised this market
3:56 pm
is higher today ahead of a weekend that's going to be so critical to cyprus? >> definitely. and i think it's this fear of downside versus fear of missing out. everybody doesn't want to be the person that didn't get in front of this rally and that as to be the person that has to explain to their investors why they're not up for the year when the entire market is. so people are staying long, but they're buying hedges, buying protection to save themselves. >> they're chasing this market. >> time to step back and buy an apple now. buy some apple. going to have the dividend increase. going to get that cell phone contract in china, going to have a smart tv. going to have a smart watch, and going to have a cheaper ipad skpirksphone. that's all going to be driving apple on the upside. >> all right. >> all i know is a watch to tell time. all right. thank you so much, we appreciate it. >> i love those graphics, those snazzy graphics. >> very high-tech there. coming back with the closing countdown, the final one for the week, maria. >> after and the bell, we'll
3:57 pm
talk with the creator of the hit television show, "the walking dead." do you watch this? he says the near collapse of the economy a few years ago may have breathed life into this zombie show. he'll explain, exclusively, in a few minutes. you're watching the "closing bell" on cnbc on a friday. first in business, worldwide. [ male announcer ] this is joe woods' first day of work.
3:58 pm
3:59 pm
and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.


disc Borrow a DVD of this show
info Stream Only

Uploaded by TV Archive on